Sectoral contracts in many European countries set wage floors for different occupation groups. In addition, employers … often pay a wage premium (or wage cushion) to individual workers. We use administrative data from Portugal, linked to … collective bargaining agreements, to study the interactions between wage floors and wage cushions and quantify the impact of …

We analyse a unique data set that combines reservation wage and actually paid wage for a large sample of Dutch recent … proportionality. We find that the difference between reservation wage and accepted wage is virtually random, as search theory predicts …. We also find that most information contained in the accepted wage is included in the reservation wage, as one would …

Using longitudinal employer-employee data spanning over a 22-year period, we compare age-wage and age … ages, wages increase in line with productivity gains but as prime-age approaches, wage increases lag behind productivity …-level productivity exceeds their contribution to the wage bill. On the methodological side, we note that failure to account for the …

The paper provides a theoretical foundation for the empirical regularities observed in estimations of wage consequences … of overeducation and undereducation. Workers with more education than required for their jobs are observed to suffer wage … less education than required for their jobs earn wage rewards. These departures from the Mincer human capital earnings …

In the model of Harris and Holmstrom (1982) workers pay an insurance premium to prevent a wage decline. As employers … are unable to assess the ability of a labour market entrant, they would offer a wage equal to expected productivity of the … reduction in starting wage to prevent a reduction in their wage when their productivity is revealed to be below the expected …

expensive older workers into retirement. Based on the seniority wage model developed by Lazear (1979), we discuss steep … seniority wage profiles as incentives for firms to dismiss older workers before retirement. Conditional on individual retirement … incentives, e.g., social security wealth or health status, the steepness of the wage profile will have different incentives for …

As Switzerland experiences a severe shortage of nurses, this paper investigates the impact of students' ex ante wage … results confirm that subjective wage expectation data are useful in modeling individual choice …